Bill Text: IA HSB641 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A study bill for excluding certain promotional play receipts from the definition of adjusted gross receipts for purposes of the wagering tax on gambling games.
Spectrum: Unknown
Status: (Introduced - Dead) 2016-03-23 - Voted - Ways and Means. [HSB641 Detail]
Download: Iowa-2015-HSB641-Introduced.html
House
Study
Bill
641
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
SANDS)
A
BILL
FOR
An
Act
excluding
certain
promotional
play
receipts
from
the
1
definition
of
adjusted
gross
receipts
for
purposes
of
the
2
wagering
tax
on
gambling
games.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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_____
Section
1.
Section
99F.1,
Code
2016,
is
amended
by
adding
1
the
following
new
subsections:
2
NEW
SUBSECTION
.
19A.
“Promotional
play
receipts”
means
3
the
total
sums
wagered
on
gambling
games
with
tokens,
chips,
4
electronic
credits,
or
other
forms
of
cashless
wagering
5
provided
by
the
licensee
without
an
exchange
of
money
as
6
described
in
section
99F.9,
subsection
3.
7
NEW
SUBSECTION
.
22.
“Taxable
gross
receipts”
means
8
the
adjusted
gross
receipts
less
promotional
play
receipts
9
received
after
the
date
in
any
fiscal
year
that
the
commission
10
determines
that
the
wagering
tax
imposed
pursuant
to
section
11
99F.11
on
all
licensees
in
that
fiscal
year
on
the
portion
of
12
adjusted
gross
receipts
representing
promotional
play
receipts
13
exceeds
twenty-five
million
eight
hundred
twenty
thousand
14
dollars.
15
Sec.
2.
Section
99F.4A,
subsection
6,
Code
2016,
is
amended
16
to
read
as
follows:
17
6.
The
adjusted
taxable
gross
receipts
received
from
18
gambling
games
shall
be
taxed
at
the
same
rates
and
the
19
proceeds
distributed
in
the
same
manner
as
provided
in
section
20
99F.11
.
21
Sec.
3.
Section
99F.11,
subsection
1,
Code
2016,
is
amended
22
to
read
as
follows:
23
1.
A
tax
is
imposed
on
the
adjusted
taxable
gross
receipts
24
received
each
fiscal
year
from
gambling
games
authorized
under
25
this
chapter
at
the
rate
of
five
percent
on
the
first
one
26
million
dollars
of
adjusted
taxable
gross
receipts
and
at
the
27
rate
of
ten
percent
on
the
next
two
million
dollars
of
adjusted
28
taxable
gross
receipts.
29
Sec.
4.
Section
99F.11,
subsection
2,
unnumbered
paragraph
30
1,
Code
2016,
is
amended
to
read
as
follows:
31
The
tax
rate
imposed
each
fiscal
year
on
any
amount
of
32
adjusted
taxable
gross
receipts
over
three
million
dollars
33
shall
be
as
follows:
34
Sec.
5.
Section
99F.11,
subsection
2,
paragraph
b,
35
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_____
subparagraph
(2),
Code
2016,
is
amended
to
read
as
follows:
1
(2)
If
the
licensee
of
the
racetrack
enclosure
has
been
2
issued
a
table
games
license
during
the
fiscal
year
or
prior
3
fiscal
year
and
the
adjusted
gross
receipts
from
gambling
games
4
of
the
licensee
in
the
prior
fiscal
year
were
one
hundred
5
million
dollars
or
more,
twenty-two
percent
on
adjusted
taxable
6
gross
receipts
received
prior
to
the
operational
date
and
7
twenty-four
percent
on
adjusted
taxable
gross
receipts
received
8
on
or
after
the
operational
date.
For
purposes
of
this
9
subparagraph,
the
operational
date
is
the
date
the
commission
10
determines
table
games
became
operational
at
the
racetrack
11
enclosure.
12
Sec.
6.
Section
99F.11,
subsection
3,
paragraphs
a,
b,
and
13
c,
Code
2016,
are
amended
to
read
as
follows:
14
a.
If
the
gambling
excursion
originated
at
a
dock
located
15
in
a
city,
one-half
of
one
percent
of
the
adjusted
taxable
16
gross
receipts
shall
be
remitted
to
the
treasurer
of
the
city
17
in
which
the
dock
is
located
and
shall
be
deposited
in
the
18
general
fund
of
the
city.
Another
one-half
of
one
percent
of
19
the
adjusted
taxable
gross
receipts
shall
be
remitted
to
the
20
treasurer
of
the
county
in
which
the
dock
is
located
and
shall
21
be
deposited
in
the
general
fund
of
the
county.
22
b.
If
the
gambling
excursion
originated
at
a
dock
located
23
in
a
part
of
the
county
outside
a
city,
one-half
of
one
percent
24
of
the
adjusted
taxable
gross
receipts
shall
be
remitted
to
25
the
treasurer
of
the
county
in
which
the
dock
is
located
and
26
shall
be
deposited
in
the
general
fund
of
the
county.
Another
27
one-half
of
one
percent
of
the
adjusted
taxable
gross
receipts
28
shall
be
remitted
to
the
treasurer
of
the
Iowa
city
nearest
to
29
where
the
dock
is
located
and
shall
be
deposited
in
the
general
30
fund
of
the
city.
31
c.
Eight-tenths
of
one
percent
of
the
adjusted
taxable
gross
32
receipts
tax
shall
be
deposited
in
the
county
endowment
fund
33
created
in
section
15E.311
.
34
Sec.
7.
Section
99F.11,
subsection
3,
paragraph
d,
35
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_____
unnumbered
paragraph
1,
Code
2016,
is
amended
to
read
as
1
follows:
2
Two-tenths
of
one
percent
of
the
adjusted
taxable
gross
3
receipts
tax
shall
be
allocated
each
fiscal
year
as
follows:
4
Sec.
8.
Section
99F.11,
subsection
3,
paragraph
e,
Code
5
2016,
is
amended
to
read
as
follows:
6
e.
The
remaining
amount
of
the
adjusted
taxable
gross
7
receipts
tax
shall
be
credited
as
provided
in
section
8.57,
8
subsection
5
.
9
EXPLANATION
10
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
11
the
explanation’s
substance
by
the
members
of
the
general
assembly.
12
This
bill
concerns
wagering
taxes
on
gambling
game
receipts
13
as
provided
in
Code
chapter
99F.
14
Code
section
99F.1
is
amended
by
adding
two
new
definitions.
15
“Promotional
play
receipts”
is
defined
as
the
total
sums
16
wagered
on
gambling
games
with
tokens,
chips,
electronic
17
credits,
or
other
forms
of
cashless
wagering
provided
by
18
a
licensee
without
an
exchange
of
money.
“Taxable
gross
19
receipts”
is
defined
as
adjusted
gross
receipts
less
20
promotional
play
receipts
received
after
the
date
in
any
21
fiscal
year
that
the
wagering
tax
on
the
portion
of
adjusted
22
gross
receipts
representing
promotional
play
receipts
exceeds
23
$25,820,000.
24
Code
section
99F.11,
providing
for
the
wagering
tax,
is
25
amended
to
provide
that
the
wagering
tax
is
calculated
on
the
26
taxable
gross
receipts
of
a
gambling
game
licensee
instead
of
27
the
adjusted
gross
receipts.
28
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